Coffee prices skyrocket: crop failures and inflation hit consumers!

Coffee prices skyrocket: crop failures and inflation hit consumers!

Coffee prices in Germany have reached a new high, well above the general inflation rate. This is mainly due to significant increases in import prices for green coffee caused by crop failures in key producing countries. According to the Bietigheimer Zeitung, import prices for unroasted coffee beans rose by 53 percent in April 2023 compared to the previous year, while prices for roasted or decaffeinated coffee rose by 35.8 percent. These drastic increases are the result of unpredictable extreme weather events that have affected many coffee plantations.

The situation in Brazil, one of the largest coffee producers in the world, is particularly critical. 2024 was the warmest year on record there, which led to drought and devastating forest fires, massively affecting the coffee harvest. Statistics show that Brazil was responsible for 516,000 tons of coffee in 2022, accounting for 41.1 percent of the total import volume to Germany. Vietnam followed with 16.2 percent, ahead of Honduras (5.5 percent) and Colombia (4.3 percent), Yahoo Finance reports.

Rising consumer prices and consumer behavior

Consumers in Germany are feeling the effects of these price increases. In April 2023, coffee beans were already 12.2 percent more expensive than in April 2022. Compared to April 2021, there was an increase of 31.2 percent. This price development is directly related to the aforementioned import prices for green coffee. Despite rising prices, coffee consumption in Germany remains relatively stable, with a slight decline. In 2024, every German consumed an average of 163 liters of coffee per capita, which represents a decrease compared to 169 liters during the Corona period.

However, drinking coffee remains an indispensable part of German culture. This resilience among consumers shows that despite higher costs, the need for a cup of coffee remains unbroken. The German Coffee Association has found that consumption has grown even during the uncertain times caused by the pandemic, although it is now recording a small decline.

Overall, developments in the coffee market are a complex interweaving of climate factors, global trade dynamics and consumer behavior. The coming months will show how sustainable these price increases will be for German coffee consumption and what measures the industry will take to overcome the challenges.

For more information and details on the price increases, please visit the articles from the Bietigheim newspaper and Yahoo Finance.